A widely followed crypto trader says that one Ethereum (ETH) competitor is close to carving a bottom after losing roughly 95% of its value in 2022.
Pseudonymous analyst Cantering Clark tells his 156,300 Twitter followers that market sentiment on smart contract platform Solana (SOL) is so bearish that it could actually be a signal for a local bottom.
“Looks like the market might actually be a bit crowded here. I think that my own interpretation of calling for another 50% drop along with everyone else calling for $3 might be the signal that this thing is completely one-sided and potentially bottoming here for the near future.”
Last week, Cantering Clark predicted a massive decline for SOL and said the Ethereum rival could drop between $5 to $3. Now, the trader believes that a short squeeze is in the cards for Solana.
“Long SOL for more of a squeeze possibly.”
A short squeeze happens when traders who borrow units of an asset at a certain price in hopes of selling them for a lower price to pocket the difference are forced to buy assets back as the trade moves against their bias.
Data from analytics firm CoinGlass shows that shorts make up over 51% of SOL positions in the last 12 hours, suggesting that traders are betting on the altcoin to fall.
At time of writing, Solana is changing hands for $9.80, a fractional decrease on the day.
As for what 2023 might bring for the crypto markets, Cantering Clark predicts that digital assets will likely trade in a wide range with no fresh record highs.
“Here is my 2023 prediction. Big ranges across all asset classes, no new all time highs. Gold continues to outperform.”
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Source: https://dailyhodl.com/2023/01/01/top-crypto-analyst-says-one-ethereum-challenger-could-be-bottoming-after-95-decline-last-year/